skip to content

Faculty of Economics

Journal Cover

Tambakis, D. N.

On the risk of long-run deflation

Economics Letters

Vol. 122(2) pp. 176-181 (2013)

Abstract: I determine expected long-run inflation in a two-state New Keynesian model driven by natural interest-rate uncertainty. Monetary policy switches between discretion in “normal times” and zero-lower-bound episodes when it is passive. Long-run U.S. inflation ranges from −1.8% to +1.2% p.a.

Keywords: Zero lower bound; Long-run inflation; Monetary policy

JEL Codes: E31, E52, E58

Author links: Demosthenes N.  Tambakis  

Publisher's Link: http://dx.doi.org/10.1016/j.econlet.2013.11.011



Papers and Publications



Recent Publications


Carvalho, V. M. and Grassi, B. Large Firm Dynamics and the Business Cycle American Economic Review [2019]

Carvalho, V. M., Nirei, M., Saito, Y. U. and Tahbaz-Salehi, A. Supply Chain Disruptions: Evidence from the Great East Japan Earthquake Quarterly Journal of Economics [2021]

Cantore, C. and Freund, L. B. Workers, Capitalists, and the Government: Fiscal Policy and Income (Re)Distribution Journal of Monetary Economics [2021]

Aidt, T. S., Asatryan, Z., Badalyan, L. and Heinemann, F. Vote Buying or (Political) Business (Cycles) as Usual? Review of Economics and Statistics [2020]